QUOTE AND NEWS
Forbes  Sep 9  Comment 
It must be noted that Macau VIP gaming is of immense importance for Wynn. It contributes more than 45% to Wynn's stock value, according to our estimates. We are eager to see how VIP gaming trends in the coming months. There could be a possible...
Motley Fool  Sep 8  Comment 
Steve Wynn once again gave investors an entertaining look at his company and its future on a recent conference call.
SeekingAlpha  Sep 5  Comment 
By Henry Cheung: I wrote an article named "Follow The Trend And Short Las Vegas Sands And Wynn Over The Next Months" in the first week of June. Being the only bearish article about Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN)...
TheStreet.com  Sep 5  Comment 
NEW YORK (TheStreet) -- Shares of WynnaResortsa are slipping, down -0.71% to $183.58 in early-market trading after the casino resorts company was downgraded to "hold" from "buy" at Argus Research. The firm said it based its cut in rating on...
Benzinga  Sep 5  Comment 
In Friday morning's Market Digest, Argus analyst John Staszak downgraded shares of Wynn Resorts, Limited (NASDAQ: WYNN) from Buy to Hold and lowered his EPS estimates for 2014 and 2015 from $9 to $8.50 and $10 to $9.50, respectively. Staszak...
TheStreet.com  Sep 2  Comment 
NEW YORK (TheStreet) -- Wynn Resorts shares are down -4.7% to $183.83 on Tuesday following news of a third straight month of revenue decline in China'saMacau gaming region. Gaming revenue fell 6.1% during the quarter to $3.6 billion during...
The Market Financial  Sep 2  Comment 
Yesterday, a report was released that casino revenues missed estimates for the 3rd month. This news is certainly weighing heavily on the casino stocks today. Leading casino stock WYNN Resorts LTD (NASDAQ:WYNN) is trading lower by $7.54 to $185.34...
Motley Fool  Aug 29  Comment 
Wynn Resorts' stock has slipped recently but that could create a long-term buying opportunity for investors.
SeekingAlpha  Aug 29  Comment 
By Fredrik Arnold: Results from IndexArb.com tallied for NASDAQ 100 Index members as of market closing prices August 27, 2014 were compared to analyst mean target price projections one year out. The resulting chart of that data shown below turned...
Forbes  Aug 29  Comment 
The worst performing sector as of midday Friday is the Services sector, showing a 0.1% loss. Within the sector, Wynn Resorts (NASD: WYNN) and Interpublic Group of Companies (NYSE: IPG) are two of the day's laggards, showing a loss of 2.1% and...




 

Wynn Resorts, Limited (NASDAQ: WYNN) develops and operates luxury casino resorts. The company serves Las Vegas, Nevada and Macau, China. In Las Vegas, the company owns the Wynn Las Vegas and Wynn Las Vegas Encore properties while in Macau, the company owns Wynn Macau and Wynn Macau Encore.[1] All of these properties are marketed as luxury resorts[2] and, in Las Vegas, WYNN likes to position its resorts as the most expensive in the city.[3] In 2010, the company earned $4.18 billion in revenue and $316 million in net income.

Company Overview

Business Segments[4]

  • Las Vegas (31% of total revenue, 70% of assets, 57% of costs)
  • Wynn Macau (69% of total revenue, 30% of assets, 43% of costs)

Business Growth[5]

Fiscal Year ended December 31, 2010

  • Revenue increased to $4.18 billion from $3.05 billion in 2009.
  • Net income increased to $316 million from $39.1 million in 2009.

Trends and Forces

Wynn has big exposure to the Macau gaming market

Due to the company's big investments in Macau, the company is both receptive of booms in the emerging markets and susceptible to the busts.The Macau gaming market is largely dependent on the Chinese market and economy. If the market worsens as it had in the 2008-2010 recession, Wynn Resorts could see its bottom line affected accordingly.

Wynn insists on keeping full-time staff employed

During downturns, Wynn's plan is to preserve employment includes pay cuts, reduced work weeks for its employees and suspend 401(k) matching. CEO Steve Wynn believes that eliminating job security worries amongst its employees is paramount to maintaining strong human capital, a driver of the consumer's experience at any Wynn casinos.[6]

Government Regulation and Gaming Laws

Macao's gaming laws and gaming taxes are relatively young and have few precedents, making them quite vulnerable to sudden change. China has a large and affluent middle class, but for many years travel and currency restrictions made it difficult and undesirable for visitors to come to Macao. While the Chinese government relaxed many of these restrictions when it first granted gaming licenses and ended its state-run gaming monopoly, there is no sign that this deregulation trend will continue.[7]

Competition

Wynn Resorts faces intense competition in both Las Vegas and Macau. The company’s primary competitors include Las Vegas Sands and MGM Mirage, both of which operate in the Las Vegas and Macau markets. Wynn Resorts also faces competition from privately-held Harrah’s Entertainment, Boyd Gaming, and Native American casinos.

  • Las Vegas Sands: Like Wynn, LVS has properties in Las Vegas, Macau, Bethlehem in Pennsylvania and Singapore.[8]
  • MGM Mirage: Operates casino resorts, golf courses, and golf clubs in the United States. MGM has a strategic alliance with the Mashantucket Pequot Tribal Nation, owner of Foxwoods Casino Resort in Ledyard, Connecticut.
  • Boyd Gaming: Owns and operates casinos in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey in addition to pari-mutuel jai alai facility in Florida, two travel agencies, and an insurance company.
  • Harrah's Entertainment: A gaming company that owns and operates under the Harrah's, Caesars and Horseshoe brand names.[9] It also owns the London Clubs International family of casinos and the World Series of Poker.

References

  1. Wikinvest SEC Filings: 2010 10-K WYNN, Page 3
  2. John Dobosz (February 26, 2009). Going All In For Wynn. Forbes.
  3. Oskar Garcia (February 20, 2009). Wynn Resorts to post 4Q earnings on Tuesday. Forbes.
  4. Wikinvest SEC Files: 2010 10-K WYNN, Page 102-103
  5. Wikinvest SEC Files: 2010 10-K WYNN, Item 6: Selected Financial Data
  6. Wynn Resorts Ltd. Q3 2008 Earnings Call Transcript. Seeking Alpha (October 30, 2008).
  7. MacauCasinoWorld.com: History.
  8. Wikinvest: Las Vegas Sands
  9. Corporate Profile. Harrah's Entertainment.


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